IR35 Review: Risk of Incentivising Non-compliance and Harming Workers

Today the Treasury announced that it has opened a review into the upcoming IR35 changes. It has also indicated that implementation will take place as planned on 6 April 2020, despite calls for a delay from businesses.

Neil Carberry, Chief Executive of the Recruitment and Employment Confederation, said:

“Pushing ahead with an approach to taxing contractors that is not fit-for-purpose will punish ethical businesses, incentivise non-compliance and harm workers. A review is the right call, and it’s good to see further opportunities for engagement have opened up. But it would make sense to delay the implementation date while a full, independent review takes place. Delaying will allow MPs to properly take stock of the impact the legislation will have, and to regulate non-compliant umbrella companies which could prosper under IR35 as it is currently conceived. Importantly a delay will afford businesses a more reasonable amount of time to prepare at a time when they are facing an unpredictable economy and major skills shortages.”